2002 (11) TMI 657

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...., is a Limited Company carrying on business of Exports. Defendant Nos. 2 and 3 are the Directors of Defendant No. 1. Defendant No. 4 is the Company Secretary of Defendant No. 1. 4. The Defendant No. 2 is stated to have induced the Plaintiffs, vide his telefax dated 5-6-1996, for subscribing to the NRI share for Neha Export issue. In the said telefax, Mr. Anand Gaggar, the Defendant No. 2, made representation to the effect that 20 per cent deduction is available on capital gains on the sale of Viniyoga Clothes shares and thereby induced the Plaintiffs to send two cheques of Rs. 3,00,000 each for applying for 20,000 shares. 5. The plaintiffs reposing faith on the representations of the Defendant No. 3, in good faith, applied for 20,000 ....

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....tioned article published in the Economic Times, according to plaintiffs, makes it clear that the defendants had concealed material facts and misrepresented to the Plaintiffs regarding the profitability on the purchase of the said shares. The Defendants are alleged to be acting mala fidely and that without issuing the shares to the Plaintiff, they have illegally withheld the amount of the plaintiffs. 9. Despite the numerous requests made by the plaintiffs to the Defendants, the Defendants not only failed to deliver the shares to the Plaintiffs, but also failed to refund the sum of Rs. 6,00,000. 10. The Plaintiffs sent a Legal Notice dated 30-7-1997 by registered A/D pointing out to the Defendants, that they (Plaintiffs) were being undu....